Stock Incentive Plans

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

As a result of the Reverse Stock Split, proportional adjustments were made to the Company's issued and outstanding common stock and to its common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the Reverse Stock Split. No fractional shares were issued in connection with the Reverse Stock Split. All references herein to common stock and per share data presented in this footnote have been retrospectively adjusted to reflect the Reverse Stock Split.

On December 15, 2016, the Company’s shareholders approved the 2016 Equity Compensation Plan (the “2016 Plan”) and the Company registered 764,087 shares of common stock adjusted for the Reverse Stock Split, which may be issued under the 2016 Plan. Any director, officer, employee or consultant of the Company or any of its subsidiaries (including any prospective officer or employee) is eligible to be designated to participate in the 2016 Plan. The Company withheld shares related to restricted stock awards that vested in 2020 at the fair market value equivalent to the maximum statutory withholding obligation and remitted that amount in cash to the appropriate taxation authorities. On June 7, 2019, the Company's shareholders approved an amendment and restatement of the 2016 Plan, which increased the number of shares reserved under the 2016 Plan by an additional 357,142 shares to a maximum of 1,121,229 shares of common stock.

On January 2, 2020, the Company granted 53,178 restricted shares as a company-wide grant under the 2016 Plan. The fair value of the grant based on the closing share price on January 2, 2020 was $1.7 million. The shares will vest in equal installments over a three-year term. Additionally, the Company granted 4,037 common stock to its board of directors. The fair value of the grant based on the closing share price of January 2, 2020 was $0.1 million. The shares vested immediately. The amortization of the above grants is $0.3 million and $0.9 million, respectively for the three and nine months ended September 30, 2020, which is included in the general and administrative expenses in the Condensed Consolidated Statements of Operations.

During the second quarter of 2020, the Company granted 50,713 restricted shares to certain of its employees under the 2016 Plan. The fair value of the grant based on the closing share price on grant date was $0.6 million. The shares will vest in equal installments over a three-year term beginning January 2, 2020. The amortization of the above grants included in the general and administrative expenses in Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2020 was $0.1 million and $0.2 million, respectively.

As of September 30, 2020 and December 31, 2019, stock awards covering a total of 222,775 and 222,786 of the Company’s common stock, respectively, are outstanding under the 2016 Plan. The vesting terms range between one to three years from the grant date. The Company is amortizing to stock-based compensation expense included in general and administrative expenses the fair value of non-vested stock awards at the grant date.

As of September 30, 2020 and December 31, 2019, vested options covering 316,024 and 289,845 of the Company’s common stock, respectively, are outstanding with exercise prices ranging from $29.96 to $38.92 per share.

As of September 30, 2020 and December 31, 2019, unvested options covering 10,000 and 36,553 of the Company's common stock, respectively, are outstanding with exercise prices ranging from $29.96 to $38.92 per share. The options vest and

become exercisable in four equal installments beginning on the grant date. All options expire within 5 years from the effective date.

Stock-based compensation expense for all stock awards and options included in General and administrative expenses:


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Stock awards /Stock Option Plans	$	741,020	$	1,155,223	$	2,300,444	$	3,827,902

The future compensation to be recognized for all the grants issued including the grants issued on January 2, 2020, for the three months ending December 31, 2020, and the years ending December 31, 2021 and 2022 will be $0.7 million, $1.1 million and $0.3 million, respectively.